Closed Credit Card account- should I get interest frozen

JLHE

The Credit Card Co. canceled my card and I think they closed the account on me, because my direct debit didn't go out and therefore payment bounced. I must admit I hadn't been aware of this and hadn't checked my statement; but also, they didn't telephone to tell me until they were telling me they were going to transfer it to a debt collection agency if I didn't pay up some.

So, can anyone tell me if I might as well just say to them that I'm in a bad financial situation and refuse payment and get them to freeze interest? Can they affect my credit rating any more, now?

Any help is appreciated!

Dodgeroonie

Hey JLHE,

You should certainly contact them and let them know the current situation, and they will likely try to means test you into making smaller payments. I don't know the likelyhood of them freezing the interest, but they may if you show willing....

They can affect your credit rating more and would do so by trying to get a CCJ which would stay on your credit file for 6 years I think and is basically a big WARNING to all other credit card/lending companies.

It is always best to not "refuse payment" but let them know what you can pay them - they will always take something over nothing!!

Hope this helps.

never-in-doubt

Dodgeroonie wrote: »

Hey JLHE,

You should certainly contact them and let them know the current situation, and they will likely try to means test you into making smaller payments. I don't know the likelyhood of them freezing the interest, but they may if you show willing....

You're right - They won't freeze the interest unless the account is formally placed into dispute or unless it's risen in the last few weeks in which case they can do this, so long as you then work to closing account down (i.e. can't spend anymore)

Dodgeroonie wrote: »

They can affect your credit rating more and would do so by trying to get a CCJ which would stay on your credit file for 6 years I think and is basically a big WARNING to all other credit card/lending companies.

Nah, they will not apply for a CCJ as this is only ever done if they realistically think they will recoup funds and will more than likely apply for Default. Whatever they do, we'll help you on here.

But one thing is true, the data whatever they add (default/ccj/payment history) will remain for the same 6yrs.

Dodgeroonie wrote: »

It is always best to not "refuse payment" but let them know what you can pay them - they will always take something over nothing!! Hope this helps.

I agree - best to carry on paying even a small amount.

PNPSUKNET

I ashume you missed more than one payment as they dont close accounts down for 1 missed dd

never-in-doubt

PNPSUKNET wrote: »

I ashume you missed more than one payment as they dont close accounts down for 1 missed dd

correct......